Disclaimer: This article does not constitute legal advice. If you have any questions about your individual situation it is best to seek the advice of an experienced legal professional.
“Digital nomad” is a term that has become more common as more people work remotely and live in a location that may be different from where they work. Some people may even live a semi-”nomadic” lifestyle, traveling and working. Remote workers, including remote executives, may travel frequently and commute regularly between states and countries for work. They may run a business or an organization and head up a team from a remote location and commute between offices in multiple locations.
Divorce for digital nomads, remote workers and entrepreneurs can present unique challenges. Such a divorce will involve tax issues as well as issues involving international property. A worker could be tax domiciled in one country but have citizenship and own property in one or more different countries. Digital nomads who choose to travel frequently may own one or more homes and rent these homes out while they work and travel. This allows them to have an unencumbered lifestyle, while retaining assets. One issue with an international divorce is that property that you don’t live in is treated differently from your primary residence in divorce, so this could be an issue for digital nomads and remote executives.
Common Issues for Digital Nomads and Remote Executives Getting a Divorce
Tax Issues
Your “tax domicile” or tax residency is determined by a number of factors, including where you have a permanent address, bank account and spend most of your time. US citizens and green card holders have to file taxes regardless of tax residency status. Some states also require you to file if you’re living abroad. When you file your taxes as a US resident living abroad or a foreign National living in the US, there are certain tax impacts that need to be taken into consideration. You may qualify for tax exemptions or you may miss out on tax benefits depending on your marital status and where you live. Your divorce settlement negotiations must consider all these factors strategically.
Property Division Rules
Dividing your international property can be complicated and different countries have different rules. If you don’t follow these rules things can get complicated, and you may even have to pay penalties. For example, in the US, dividing retirement accounts must be done the correct way or you can incur penalties. If you are transferring title of real estate there is a process that will be different in each country or jurisdiction. Changing the beneficiary of a foreign trust or dissolving the trust involves following certain steps which differ according to different laws.
How to Conduct Your Divorce Negotiations
If you are getting a traditional adversarial divorce you may need to be present for court hearings. This is a huge barrier for remote workers and executives who live abroad. If you choose to mediate your divorce however, you do not have to be physically present while conducting divorce mediations. You can conduct these sessions remotely online with your divorcing spouse and a neutral mediator.
Citizenship and Residency Status
Your legal ties to the country where you get a divorce will impact where and how you file your taxes, the tax exemptions and credits you get to apply for and your legal obligations when it comes to tax and property division. Consulting with expert divorce professionals and international tax professionals is advised.
Child Custody and Parenting Plans
International child custody and parenting is a complex issue that requires careful negotiation. Your agreements must be compliant with national and international law surrounding child custody and international child custody. Any agreement involving children in divorce must meet the standard of the best interest of the child when the divorce is filed in US Courts and most international courts.
International Divorce Mediation Services
At Divorce Options San Diego we regularly work with people who live and work in one or more countries. They might be traveling frequently or they might live partly in the US and partly abroad. With the advent of digital technology and work from home, people may choose to live abroad and work remotely for a variety of reasons, such as quality of life, support from family and friends and staying connected to locally based teams in an international business operation.
These divorces may be overwhelming for people who have assets located in multiple countries. We help to streamline these divorces by offering efficient solutions founded on legal expertise, international tax and finance expertise and mathematical modeling of your finances. Once we have performed a thorough analysis, we work with you to create a roadmap for your divorce. We are a full service divorce firm who handle the documentation as you move through your divorce, supporting you to exit your marriage with reduced stress. Our international divorce mediation firm has offices in San Diego, CA, Silicon Valley and Berkeley, CA, where we can meet with you in person. We often work with national and international clients who choose to conduct their divorce negotiations partially or entirely via remote mediation sessions. These sessions are completely confidential and conducted via a secure private server. Please contact us to learn more about our remote divorce mediation services.
